WASHINGTON, D.C. – Today, Congressman Brad Finstad (MN-01), Congresswoman Harriet Hageman (WY-AL), and Congressman Nathaniel Moran (TX-01) reintroduced the Prove It Act, bicameral legislation that gives small businesses a voice in the regulatory process. Senator Joni Ernst (R-IA) introduced companion legislation in the United States Senate.

“As a member of the House Committee on Small Business, I am committed to protecting Main Street business owners in southern Minnesota from costly and burdensome regulations,” said Rep. Finstad. “The Prove It Act, which passed the House of Representatives in the 118^th Congress with bipartisan support, is commonsense legislation that gives small business owners a seat at the regulatory table and holds federal agencies accountable for the impacts of their regulations. I’m proud to reintroduce this important legislation and look forward to continuing to fight against overregulation.”

“Americans are suffocating under an annual $2.1 trillion regulatory burden, with small businesses shouldering a disproportionate share of the cost.” Rep. Hageman said. “The Prove It Act holds federal regulators accountable by requiring them to follow existing law and fully assess the burden of new mandates before imposing them. Small business owners deserve a voice in the rules that directly affect them, and government agencies must consider the real consequences of costly regulations on the hardworking job creators who are the backbone of our economy.”

“The Prove It Act seeks to reduce burdensome regulations for small businesses by empowering them to petition federal agencies to review proposed regulations that could crush small businesses in East Texas,” said Rep. Moran. “This legislation protects small businesses and encourages innovation. I am proud to join Congressman Brad Finstad to support the crucial role small businesses play as drivers of economic growth and job creation. We passed this out of the House during the last term, but it was blocked by the Senate. We look forward to its passage in the House once again during the 119th Congress so it can make it through the new Senate and to the desk of President Trump.”

 “As chair of the Senate Committee on Small Business and Entrepreneurship, unleashing Main Street by slashing red tape is a top priority,” said Sen. Ernst. “We are curbing the bloated bureaucracy and empowering job creators to innovate and lead us forward. If Washington thinks more regulations are needed, it will have to prove it.”

The Prove It Act is also supported by the U.S. Chamber of Commerce, National Federation of Independent Business (NFIB), Associated Builders and Contractors (ABC), and the National Association of Home Builders (NAHB)

“The Prove It Act would be a game-changer for small businesses. This legislation closes loopholes that have emboldened federal regulators while sidelining small business owners. By ensuring America’s small businesses have a voice in the rule-making process, we can foster a pro-growth environment.” – Rodney Davis, Head of Government Affairs, U.S. Chamber of Commerce

“The Prove It Act will address the disproportionate impact that government regulations have on small businesses,” said Dylan Rosnick, NFIB Principal of Federal Government Relations. “This legislation not only remedies the loopholes in the Regulatory Flexibility Act (RFA), but it empowers small businesses to take part in the rulemaking process and provide much-needed feedback. NFIB strongly supports the Prove It Act and urges lawmakers to take action to reduce the onerous regulatory burdens facing small businesses nationwide.”

“At a time when ABC’s small business members are combating inflation, supply chain disruptions and workforce shortages, the Prove it Act would protect small businesses by ensuring regulatory agencies properly weigh the impact of their rulemakings,” said Kristen Swearingen, Associated Builders and Contractors’ vice president of legislative & political affairs. “Small businesses have been crushed by the burdens of harmful regulations for too long. The Prove It Act empowers small businesses by greatly increasing their input in the rulemaking process, granting them a check on agencies that claim new regulations will not affect small businesses’ operations. ABC is proud to support the Prove It Act in the 119th Congress and looks forward to continued efforts to protect Main Street from bureaucratic overreach.”

“NAHB commends Rep. Finstad (R-Minn.) for introducing the Prove It Act of 2024, legislation that would help ease the nation’s housing affordability by addressing the true cost of regulations on small businesses. With nearly 25% of the cost of a single-family home attributable to government regulation, this bill would increase small business input in the regulatory process and ensure agencies are fully accounting for how regulations affect small businesses.” -Carl Harris, Chairman, National Association of Home Builders

Background:

In February 2024 Congressman Finstad first introduced the Prove It Act. During the 118^th Congress, the Prove It Act passed in the House Small Business Committee, House Judiciary Committee, and on the House Floor.

Specifically, the Prove It Act requires federal agencies to analyze the impact of their regulatory action and limit these impacts for small entities by:

• Creating a way for small businesses to raise concerns when regulators do not consider both the direct and indirect costs their regulations place on them;
• Allowing small businesses to ask their chief advocate in government to review agencies’ work and make the government prove they are fully compliant with already existing laws;
• If regulators fail to comply with this review process, then small businesses will be exempt from the agency’s regulations altogether;

Ensuring small businesses can easily access preexisting guidance documents online and create a way for small businesses to directly raise questions or concerns with their regulators